European Benchmarks Tread Into Red Zone
European stock markets plunged into negative territory as the anxiety around red-hot inflation and the likely aggressive inflation combat spooked investor sentiment. Positive earnings updates however helped limit the losses.
U.K.’s FTSE 100 is 0.31 percent below the previous closing level of 7518.35. It is currently trading at 7495.19. In the 100-scrip index, only 40 scrips are in positive territory.
France’s CAC 40 index’s current level of 6,411.19 is 0.30 percent below the previous close of 6,430.19. Of the 40 scrips in the index, 13 are trading above Tuesday’s levels.
Germany’s DAX is currently trading at 14151.06, after shedding 0.25 percent from Tuesday’s close.
Switzerland’s Stock Market Index has also declined from the previous close and is currently trading at 11,669.39 after dropping 0.52 percent overnight.
The pan-European Stoxx 600 also shed 0.44 percent from previous close and is currently trading at 437.05.
The EURUSD pair is currently hovering near 1.0509 whereas the GBPUSD pair is near 1.2406.
On Tuesday, European markets had recorded strong gains, in the backdrop of low unemployment numbers from France and U.K. Germany’s DAX led the rally with a 1.59 percent uptick. France’s CAC 40 added 1.30 percent; the pan European Stoxx 600 added 1.22 percent; U.K.’s FTSE 100 rallied 0.72 percent; while Switzerland’s SMI moved up 0.50 percent.
The Wall Street had closed with strong gains on Tuesday as strong retail sales numbers helped ease concerns surrounding economic growth. Data released Tuesday had shown the retail sales in the U.S. increasing 0.9 percent month-on-month in April of 2022, matching the market forecasts. Nasdaq-100 surged 2.6 percent to close at 12,564.10 and the Dow Jones Industrial Average gained 1.34 percent to end at 32,654.59.
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